How to double your Forex trading account in one low risk trade
Many Forex Traders trade Forex risking one to two percent of their account to gain two to three percent on successful trades. This can take two hundred to four hundred Forex trades to achieve a return of one hundred percent.
If those same traders did their sums they would realize that it can take one successful trade of one hundred pips to double their Forex trading account. Most times achieving this type of trade is no more difficult than finding an ordinary successful trade which may only results in a gain of two to three percent.
How is this achieved? The concept of adding to a successful trade is as old a trading itself. What one would do is start an ordinary trade with the potential of one hundred pips and as this trades become positive you would add to your successful trade by open new trades in the same direction.
This can be done two to three times and by the time the target is reached the cumulative effect of all the trades will enable gains of up to one hundred percent. This is possible having started with as little risk as four percent of your account.
Forex traders will immediately realize that also means that if you are risking four percent to make one hundred percent it means that you can effectively have nineteen of these transactions wrong and only one wrong and still make a positive return.
Forex trading is all about stacking the probabilities is your favor. To many traders this Forex trading technique offers better odds of success than conventional money and risk management.
But. Wait there is more. The real trick is that when more lots are added to a successful trade the stop is moved to a position that ensures that if there is a reversal all deals will effectively be stopped out at breakeven or small profit. This means that after the first top up the whole transaction becomes risk free. This is a wonderful position to be in – nothing to lose and the potential of a one hundred percent gain.
The sad fact is that traders do not realize that this is much easier to achieve than they think. Volatile moves happen all the time and a very high percentage happen at the opening of major markets such as the European financial markets or the United States financial markets, after economic announcements and financial events such as the Scottish referendum.
This way of trading this done on an automated basis because the calculations of the breakeven stop position. Due to the popularity of this forex trading technique a large number of automated robots are now available in the online Forex market that automate the process that doubles your Forex account in one trade. Many Brokers are building this ability directly into their platforms.
If you are a Forex trader who has a good track record of being able identify trades with the potential to move sixty to one hundred twenty pips you should be using this forex trading technique. With odds like twenty to one you will soon find that you can beat the market very easily.